We initiate a long position with a target price of $148 (reward/risk ratio of 3.1:1). We recommend a stop-loss at $134.
The Vanguard Mid-Cap Value ETF (VOE) seeks to track the investment performance of the CRSP US Mid Cap Value Index, an unmanaged benchmark representing mid-capitalisation US value stocks.
The objective of the VOE ETF is to provide investors with exposure to mid-cap companies that are believed to be undervalued or have strong potential for future growth. Holdings are selected based on certain value-oriented criteria, such as low price to earnings (PE) ratios, low price to book (PB) ratios, and high dividend yields.
Technically, the price appears to be developing a symmetrical triangle pattern (see the black converting trendlines on the main chart as well as the insert).
A symmetrical triangle pattern implies a period of consolidation. The volume tends to diminish, indicating a lack of strong buying or selling pressure.
Within the symmetrical triangle pattern, there are support and resistance levels indicated by the lower and upper trendlines. Investors can monitor these levels and consider buying the ETF when the price approaches the support level or selling when it approaches the resistance level.
Based on forward calculations of the Relative Strength Index (RSI) indicator, the ETF will be overbought at $160.00, classifying our target price of $148 as realistic.
We suggest a medium at-risk allocation for this trade. Increase exposure for a break above $138.00.
Share Information
| Share code | VOE |
|---|---|
| Industry | ETFs |
| Market Capital (USD) | 16.64 billion |
| One year total return | 11.53% |
| Return year-to-date | 2.27% |
| Current price(USD) | 137.56 |
| 52 weeek high(USD) | 147.74 |
| 52 week low(USD) | 119.81 |
| Financial year end | - |
| Closing paragraph | We expect moderate price volatility going forward. |
Buy/Sell Rationale
Technical Analysis:
Long-term fundamental view:
Update on previous Trade Ideas
| Share Name and position |
HLMN - Buy (Continue to hold) |
COST - Buy (Continue to hold) |
REMX - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 8.01 | 501.27 | 84.60 |
| Current | 9.03 | 529.18 | 86.44 |
| Movement | 12.7% | 5.6% | 2.2% |
| Summary text |
A price that demonstrates repetitive cycles in sequences remains intriguing. The price remains above its 200-day simple moving average. Upside price momentum supports the bullish trend direction.
Our profit target is $10.00 with a trailing stop-loss of $8.30. Exit the position on 6 October 2023. |
We are particularly interested in a confluence of technical indicators that align with a bullish trend direction. The price remains above its 200-day simple moving average. Upside price momentum supports the trade.
Our profit target is $560.00 with a trailing stop-loss of $507.00 Exit the position on 7 July 2023. |
A falling wedge pattern within a previous uptrend remains intriguing. Testing both its 200-day simple moving average as well as its 61.8% Fibonacci retracement level. Upside price momentum supports the bullish trend.
Our profit target is $99 with a trailing stop-loss at $80.80. Exit the position on 21 July 2023. |
Update on previous Trade Ideas
| Share Name and position |
LIT - Buy (Continue to hold) |
VXF - Buy (Continue to hold) |
HACK - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 62.48 | 139.26 | 47.58 |
| Current | 66.27 | 148.98 | 51.41 |
| Movement | 6.1% | 7.0% | 8.0% |
| Summary text |
A falling wedge pattern within a previous uptrend remains intriguing. Testing its 200-day simple moving average. Upside price momentum supports the bullish trend.
Our profit target is $71 with a trailing stop-loss of $62.90. Exit the position on 30 August 2023. |
An incomplete symmetrical triangle pattern remains of interest. Remains above its 200-day simple moving average. Upside price momentum supports the continuation of the bullish trend.
Our profit target is $153 with a trailing stop-loss at $143. Exit the position on 2 November 2023. |
The price remains above crucial support and above its 200-day simple moving average. Upward price momentum further supports the bullish trend.
Our profit target is $55 with a trailing stop-loss at $49.50. Exit the position on 4 August 2023. |
